Mortgage payment holidays have been extended for three months to October 31st.
UK Finance data shows that some 1.82 million mortgage borrowers have been granted a mortgage payment holiday, which accounts for one in six mortgages in the UK.
John Glen, the economic secretary to the Treasury, said: “We’re doing everything we can to help people with their finances at this difficult time and that includes making sure people get the support they need with their mortgages.
“That’s why we’re working with the banks and lenders to extend payment holidays if people need them.”
He added that homeowners who can pay some or all of their mortgage should do so.
Christopher Woolard, interim chief executive at the FCA, said: “Where consumers can afford to re-start mortgage payments, it is in their best interests to do so.
“But where they can’t, a range of further support will be available. People who are struggling and have not had a mortgage payment holiday, will also continue to be able to apply until 31 October.”
Stephen Jones, chief executive of UK Finance, said: “For those borrowers who have not already applied for a mortgage payment holiday, the industry supports the extension of the availability of payment holidays until 31 October 2020 as this will provide much-needed breathing space for borrowers who need it.
“Lenders are also committed to the moratorium on involuntary repossessions to ensure no homeowner loses the roof over their head because of COVID-19 related repayment difficulties.
“A payment holiday may not be the right choice for everyone, and borrowers should only apply if they need one. We would encourage any borrowers concerned about their financial situation to check with their lender, starting by looking at their website which will have the latest information on the support available.”
This post has originally been featured in Property Wire.